Archive · 30 Jul 2026
India Launches Sovereign-Backed P&I Maritime Insurance
India’s government has started a new type of insurance for ships that helps protect against accidents and pollution.
The insurance is backed by the government, so it is safer and cheaper.
It covers things like damage to cargo, crew injuries, and cleaning up oil spills.
The new insurance can pay up to $1.5 billion if something bad happens.
This move is part of India’s plan to keep more money and jobs inside the country instead of sending them abroad.
India’s Department of Financial Services launched the first sovereign-backed Protection and Indemnity (P&I) insurance product under the Bharat Maritime Insurance Pool (BMIP).
The new P&I policy, issued by The New India Assurance Company, covers third‑party liabilities such as crew, cargo, pollution, and wreck removal, with up to $1.5 billion indemnity.
BMIP, established in May 2026, already issued 1,608 war‑risk policies and has cut war‑risk premiums by 35‑40 % during the West Asia conflict.
The launch expands BMIP beyond war‑risk to include P&I, strengthening India’s maritime insurance ecosystem and reducing reliance on foreign insurers.
The initiative aligns with India’s “Atmanirbhar Bharat” vision, boosting domestic underwriting capacity and keeping maritime trade value within the country.
- Who
- Department of Financial Services, The New India Assurance Company, Shipping Corporation of India Ltd
- What
- Launch of India's first sovereign-backed Protection and Indemnity (P&I) insurance product under the Bharat Maritime Insurance Pool (BMIP)
- When
- Thursday, 2026
- Where
- India
- Why
- To strengthen maritime risk management, reduce reliance on foreign insurers, and support the Atmanirbhar Bharat vision
- Product
- Sovereign-backed Protection and Indemnity (P&I) insurance under BMIP
- Coverage limit
- $1.5 billion
- Policies issued (as of July 29, 2026)
- 1,608
- Premium reduction
- 35-40%
- Launch date
- Thursday, 2026